What is Old Pension Scheme? All you need to know
Old Pension Scheme: Under the Old Pension Scheme, approximately 50 per cent of the last drawn salary was provided as pension.
Old Pension Scheme: Under the Old Pension Scheme, the entire pension amount to a government employee is paid by the government after retirement. (Representative image from Reuters)
Old Pension Scheme: Several states are opting back to the Old Pension Scheme. States like Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have already rolled out the Old Pension Scheme and discontinued the National Pension System (NPS).
What is Old Pension Scheme
- Under the Old Pension Scheme, the entire pension amount to a government employee is paid by the government after retirement. The pension amount is not deducted from the salary of the employee during the period of employment.
- However, the Old Pension Scheme was discontinued by the NDA government in 2004. Then Atal Bihari Vajpayee government had introduced the National Pension System.
- Under the Old Pension Scheme, a retired government employee used to get the benefit of the revision of Dearness Relief (DR), twice a year.
- Under the Old Pension Scheme, approximately 50 per cent of the last drawn salary was provided as pension.
- As per the rule, only government employees were eligible for receiving a pension under the Old Pension Scheme after retirement.
- Under the OPS there was the provision of the General Provident Fund (GPF). GPF is available only for all government employees in India. Basically, it allows all government employees to contribute a certain percentage of their salary to the GPF.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 10 PSU Stocks in 1 Year: Rs 1 lakh investment in top stock has given Rs 5.55 lakh post-tax returns
Dividend, bonus, stock split stocks: Vedanta, Bharat Dynamics, Som Distilleries & Breweries, other stocks to trade ex-date record date
SIP Investment, 15x20x12 Formula: How investing Rs 20K monthly can build a corpus of Rs 1 crore in 15 yrs | Know Calculation
Reported By: ZeeBiz WebTeam
Updated: Wed, Jan 18, 2023
10:00 AM IST
10:00 AM IST
ZeeBiz WebDesk